GERMANY's political crisis could have a major effect on the stability of the European Union due to the leading position held by Angela Merkel in Brussels, international affairs expert Daniela Schwarzer said.

Germany is facing its own political drama and possibly months of uncertainty after Chancellor Angela Merkel failed to secure the support of the FDP party to form a new Government.

And now Dr Schwarzer warned that the deadlocked German coalition talks may have huge repercussions on the EU.

She said: "Many of the major European issues that the EU is facing really depend on Germany being part of the inner circle who kinda traces the way forward.

"It does make a difference whether a large country is in a political crisis – if you want to call the situation such which we are facing in Berlin today – or whether it’s a smaller country."

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Dr Daniela Schwarzer said the EU needs Germany to remain stable

It comes as EU's budget commissioner Guenther Oettinger said Europe will be "damaged if Mrs Merkel fails to form a government.

Dr Schwarzer – who heads the German Council on Foreign Relations' research institute – told BBC World at One that despite the uncertainty surrounding Mrs Merkel's position, she remained confident the Chancellor would hold her position.

She continued: "I expect her to be the one who either forms a different government or would then call for new elections but I don’t think we are facing the end of Angela Merkel simply because the CDU at this point doesn’t have a strong alternative."

Her vision was however not shared by the co-leader of the Alternative für Deutschland (AfD) Alice Weidel.

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Speaking to the press following the announcement of the collapse of the talks, Dr Weidel welcomed the prospect of a new election after nearly two months of exploratory talks to establish a Jamaican coalition – so-called because of the parties' traditional colours resembling those of the Caribbean nation.

She said: "Merkel is finished. This shows that the AfD works because we prevented a black and green government [with the CDU/CSU and Greens].

"That's the clear result here, and we're preparing ourselves to be a rational opposition party in the Bundestag."

Chancellor Merkel told broadcaster ARD: "The path to the formation of a government is proving harder than any of us had wished for."

She said she was "very sceptical" about leading a minority government, adding that "new elections would be the better path" to resolve the current stalemate.